“Golden Week” Still Golden For China’s Rich

Helen Shen, a travel planner in Shanghai, said a private business owner had booked the whole first-class section of a Lufthansa jet to fly his family of four to Paris this month.

Shen is one of many luxury travel organisers who still see the money rolling in from executives and members of the “fu er dai” – the second generation of wealthy families – despite China’s economic uncertainty.

One reason is of course the economic slowdown. Another: The once-in-a-decade transition in China’s top leadership – which is expected to take place at the 18th Party Congress some time in October.

Gift giving, which oils the wheels of business, accounts for about 16% of China’s luxury sales according to estimates by CLSA. The leadership transition, which will ripple down from the top leadership to decision makers at all levels of the government, has thrown that into confusion.

One Beijing based salesman from a major luxury goods importer who spoke to The Wall Street Journal summed up the problem facing the sector: “Sales are down because no-one knows who to bribe.”